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How
many times have you heard people say some of the following statements
…..?
-
“I wish I could quit my job.”
-
“I
am tired of going from job to job.”
-
“I
went to an engineering college to be an engineer, but I don’t
want to be an engineer anymore.”
-
“I
am working hard, but the only people getting rich are the
owners of the company.”
-
“Can
I get some plan right now, so that I start earning?”
-
“Can
I have a job that gives me recognition?”
-
“I
just want to do something different and meet new people; I
am tired of wasting my time hanging around people without
much ambition and spending time with people who just work
hard enough so that they don’t get fired.”
-
“What
will happen to my family, if something happens to me?”
-
“I
wish I could spend more time with my family when I am most
needed……?
These
are statements often made by individuals trapped in Robert T.
Kiyosaki’s Cash Flow left-side quadrant.
The Cash Flow Quadrant
The E
stands for “employee”
The S
stands for “self
employed” or
“small business owner”
The B
stands for “business
owner”
The I
stands for “investor”
The
way to know which quadrant you are in is simply to know the quadrant
where your cash flows from.
If
your income flows from an organization which has employed you,
then you belong to the ‘E’ quadrant, or if you belong to the category
of self employed who charge for their services rendered like doctors,
lawyers, consultants, family businesses, real estate agents, etc.,
then you are in the ‘S’ quadrant.
If
your income comes from investments, then you are in the ‘I’ quadrant.
If
your income comes from a business that you don’t have to work
in, then you are in the ‘B’ quadrant. A ‘B’ or big business owner
can leave his or her business for a year or more and come back
to find it running more profitably, unlike a small business owner
whose income stops when he stops working.
‘1215’
was the signing of Magna Carte; that was the year the rich took
the power away from King John of England. From then on the rich
made the rules.
So
given the choice, one would want to invest from the ‘B’ side because
the big business owners(the rich) have the best rules for investing,
simply because they make the rules.
America
was founded by a tax revolt, which began in 1773, with the Boston
Tea party. America grew rapidly because it was a tax-free nation.
In 1943, the law changed and all employees in America had taxes
taken from their paychecks. In other words, the government got
paid before they were paid.
Paying
taxes was said to be a patriotic duty because World War II was
on …….but it was the worker in the ‘E’ quadrant who paid most
of the taxes. The people in the ‘S’ and ‘B’ quadrants still had
control over how much they paid, and when they paid their taxes.
In
1986, the tax law changed and it negatively affected people primarily
in the ‘S’ quadrant, more specifically the doctors, attorneys,
accountants and other professional people.
These
people found themselves in a constant state of financial struggle
or insecurity. Their primary income was through wages and as their
wages increased, so did their taxes.
However
things were favorable for people in the ‘B’ quadrant, given the
simple fact that the employee gets taxed first and a business
owner gets taxed last.
You
can also exploit the power of a ‘B’ quadrant business…….a business
that has virtually no earning limitations and no international
boundaries that has optimally harnessed the power of Information
Technology.
ENTERING
THE ‘B’ QUADRANT……..
There
are three general types of businesses found in the ‘B’ quadrant:
They
are the big companies that we have all heard of like Dell Computers
or Hewlett Packard which started from scratch and have over a
time built themselves into powerful and successful concerns.
Another
type comprises of purchasing a franchise such as McDonald’s or
Taco Bell. However, that again would mean an investment worth
a million dollars.
A
third cost effective possibility which could be exploited by anyone
is the network marketing strategy.
VALUE
OF A NETWORK
Metcalf’s
Law
Robert
Metcalf is one of the people credited for creating the ether-net,
is also credited for defining Metcalf’s law which is:
A
Network’s Economic Value = No. of users.
Stating
it in simpler terms:
If
there exists just one telephone, it really has no economic value.
The moment there are two telephones, the economic value is squared
and with the third phone, the value of the network becomes 9.In
other words, the economic value of a network goes up exponentially,
not arithmetically
The
type of network business today is known as network marketing.
Instead
of a network of franchised businesses, it is a network of franchised
individuals. According to New York Times and Wall Street
Journal, it is going to be the next trillion dollar industry
after automobiles and I.T.
What
is it…………………
The
idea behind network marketing, also known as, Referral marketing
or Multilevel marketing, is simple
Imagine
you have a product to sell. You could do what most businesses
do: either sell it directly to consumers or find others who will
buy your product from you and sell it to other people. MLM scheme
require that you recruit people not only to buy and sell your
product but also recruit people who will not only buy and sell
your product but also recruit people……………………ad infinitum.
Why,
you might wonder whether you would recruit people to compete with
you? It is because you will get a cut of their profits and enjoy
the royalty income.
In
network marketing, it is not only the money; not only the products
but also the life changing business education programme, which
is powerful enough to change a caterpillar into a butterfly. The
primary role of the mentor is to guide you from the E and S sides
to the B and I sides.
The
Network Marketing has done a great service by leveling the playing
field. They did this by making the opportunity for truly great
wealth available to anyone willing to follow the system and enter
the world of B quadrant.
This
strategy gives the power of Leverage.
The
turnover of Indian Direct Selling Association has already crossed
2000 crores/per annum.
If
you a person with big dreams and are also a person who would love
to support others in achieving their big dreams, then the network
marketing business is waiting for you.
A
Business and People who help others have their dream is worth
looking for……………
We
all have the potential to become ultra rich and enjoy time and
money freedom, if we harness the power of both B and I quadrant
.Mostly E and S quadrant do not have this power.
So
in what quadrant do you want to be?
It
may be time for you to move on, to move ahead in life, to move
from one quadrant to another……………..
.
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